Zomato has officially discontinued its intercity food delivery service,

Zomato has officially discontinued its intercity food delivery service, “Legends,” just over a month after its relaunch. The service, originally launched in august 2022, aimed to bring delicacies from ten cities across india to customers’ homes. However, after two years of attempting to refine the offering, the company was unable to find the right product-market fit.

In a post on the social media platform X, zomato CEO Deepinder Goyal stated, “After two years of trying and not finding product-market fit, we have decided to shut down the service with immediate effect.”

Zomato initially launched “Legends” with high expectations, but the service faced operational challenges early on. These issues led to the silent shutdown of the service in april 2023, followed by a relaunch in July. To address previous setbacks, zomato implemented changes, including a minimum order value of Rs 5,000 and pre-stocked food deliveries to select customers in major cities like delhi NCR, Bengaluru, and Mumbai. Despite these efforts, the service could not gain traction.

This discontinuation follows the recent shutdown of Zomato’s hyperlocal delivery service, “Xtreme,” which was introduced in october last year but failed to meet performance goals.

Zomato’s decision to pull back from these services comes amid its acquisition of paytm Insider for Rs 2,048 crore. This move aims to expand the company’s footprint in the entertainment ticketing business, which includes movies, sports, and live events.

On the financial front, zomato reported a consolidated profit of Rs 253 crore for the first quarter of FY25, up from Rs 175 crore in the previous quarter. Revenue for the quarter saw a 74% year-on-year growth, reaching Rs 4,206 crore, while total expenses rose to Rs 4,203 crore, reflecting the company’s expansion strategy and increased operational costs
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Balasahana Suresh

24/08/2024 02:20 PM